Global Brands’ net revenue for the year increased by 11.6 per cent. The children’s segment increased 3.9 per cent and the footwear and accessories segment increased 5.6 per cent. The men’s and women’s fashion segments increased the most out of the three by 31.5 per cent.
Total margin as a percentage of net revenue increased 36.4 per cent. Operating costs increased due to investments in brands and the addition of new licenses. Operating profit and net profit increased 64.5 per cent and 89.4 per cent. Adjusted net profit attributable to shareholders increased 49.4 per cent. Global Brands at the beginning of its new fiscal year reached a deal with Marquee Brands and BCBG to save the ailing retailer. As per the agreement, Global Brands takes leadership of BCBG’s wholesale, retail and online operations as well as lead marketing, sales and distribution for the retailer. The company plans to expand BCBG’s footwear, belts, hosiery, jewelry and home offerings.
Global Brands has a new three-year plan intended to bring growth and reach the goal of five billion dollars in revenue by 2020. The plan, which includes total margin improvement by 150 basis points and increasing EBITDA by 50 per cent, builds on the past three financial years where Global Brands delivered 5.8 per cent compound annual growth in revenue, nine per cent core operating profit, 8.7 per cent in EBITDA, and a total margin percentage increase by over 500 basis points.
